Parents want only the best for their children, and what better way to ensure that they’ll have a bright future than sending them to school and making sure that they finish their studies? Everybody knows that sending kids to school is an expensive affair, that’s why many prepare for it early on by building an education savings plan.
For students who are struggling financially and can’t keep up with the expenses in school. There are ways to address it. One of these is to get a loan.
Here are some of the things that you need to know about the loan and the loan repayment:
- The Australian Government has announced several reforms in an attempt to improve the higher education sector. With these reforms, students will have more options and as for the higher education sector, transparency and accountability will be improved.
- Check the myGov website. It now offers features that enable you to view your HELP debt, check your payment reference number, as well as identify the payment options available online. All you have to do it to create a myGov account that is linked to the ATO. You can also reach out to the ATOP to find out how much you owe.
- Once your repayment income is beyond the compulsory repayment threshold, you need to start making loan repayments. Bear in mind that the compulsory repayment threshold is updated every year.
- Repayment income is affected by several factors. These include your taxable income, reportable fringe benefits, total net investment loss, reportable super contributions, as well as the exempt foreign employment income amounts. The ATO will calculate your compulsory repayment for a particular year. This will be included in your income tax notice of assessment.
- The amount of your repayments is a percentage of your income. Of course, it increases when your income increases. In other words, the higher your income is, the higher your repayments will be.
- Voluntary repayments, any amount, can be done at the ATO anytime. These are additional payments to the compulsory repayments that are made through your tax return.
- Voluntary repayments can be done by BPAY or direct credit. These can also be done through a credit card or check to the ATO. Prepare your PRN when making voluntary repayments. You can always reach out to the ATO if you need assistance on making voluntary repayments.
Do you have other ideas on HELP loan repayment and children’s education? Share your insights in the comments section.